Geothermal ITC for ESCOs: Who Claims the Credit and How It Affects Performance Contracts

Diagram showing how ownership determines who may claim or monetize the geothermal ITC in an ESCO performance contract.

David Diaz, Chief Strategy Officer · Technical review: John Kapral, Senior Director, Renewable Energy Tax Incentives & Credits · Updated September 2026 At a Glance Question Short answer Primary credit Section 48 Potential rate 30% with applicable requirements; potentially up to 50% with qualifying adders Customer-owned public project Elective pay may be available under §6417 … Read more

Case Study: How a $937,000 Geothermal Project Produced a $289,000 Federal Tax Credit

Henry County Board of Education | New Castle, Kentucky By David Diaz, CSO, Walker Blue LLC The Henry County Board of Education installed a 22.7 kW geothermal water-source heat pump system at a total project cost of $937,030. Walker Blue substantiated $851,157 as ITC-eligible basis and supported a federal Investment Tax Credit of approximately $289,000, … Read more

Can District and Campus Geothermal Projects Qualify for the Federal ITC?

Campus geothermal energy system showing underground heat exchange loops serving multiple educational buildings, illustrating how district and campus geothermal projects can support sustainability goals and potentially qualify for federal clean energy tax incentives.

Yes, geothermal systems serving district energy networks, campuses, and central plants may qualify for the federal Investment Tax Credit, and the runway is longer than most owners assume. While solar and wind face compressed construction-start timing under the One Big Beautiful Bill Act (P.L. 119-21, enacted July 4, 2025), geothermal heat pump property retained eligibility … Read more

Case Study: LEED EA Energy Modeling for a $90M Geothermal Central Plant: University of Louisville Speed School

Geothermal Central plant

30.1% Modeled Annual Utility Cost Reduction. 12 LEED EA Points Supported. 160 Geothermal Wells Drilled 600 Feet Deep. The University of Louisville’s J.B. Speed School of Engineering Student Success & Research Building is one of the more technically demanding LEED EA energy modeling engagements Walker Blue has completed for a higher education client. The $90 … Read more

2025 NREL Geothermal Market Report: Key Insights for Owners, Developers, and Engineers

As we kick off 2026, the clean energy landscape is heating up—literally. The National Renewable Energy Laboratory (NREL) just dropped their 2025 U.S. Geothermal Market Report, and it’s packed with data confirming what we’ve been seeing on the ground: geothermal energy has one of the strongest long-term runways in renewables. But success hinges on smart … Read more

Why ITC Success for Geothermal and Storage Projects Is Won or Lost Before Construction Starts

For years, the Investment Tax Credit was treated as something handled after a project was designed, built, and placed in service. That approach no longer works. Under the Inflation Reduction Act and clarified further under OBBBA, geothermal and energy storage projects sit at the center of ITC opportunity. They also sit at the center of … Read more

Webinar: Cutting Operating Costs with Federal Energy Tax Incentives

Cutting Operating Costs with Federal Energy Tax Incentives: How to get started This webinar explains how Elective Pay under the Inflation Reduction Act—maintained through the One Big Beautiful Bill Act (OBBBA), gives government and nonprofit organizations a time-limited opportunity to convert federal energy tax credits into cash payments. Learn how these funds can directly support … Read more

Webinar: Funding Geothermal Projects

Real World Strategies for Leveraging Incentives, Financing, and Project Delivery Practical, solutions-focused panel discussion featuring leading experts in finance, development, incentives, and project delivery, who will share real-world strategies for funding and implementing successful geothermal projects in today’s market. – Josh Howes, CEO & Founder, Walker Blue, LLC– David Diaz, CSO, Walker Blue, LLC– J.C. Caine, Sr. … Read more

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